Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

<a href="https://www.apartments.com.au/developers/hg-developments">HG Developments</a> is doubling down on Maud Street in Newstead, filing plans for a new apartment tower just a few doors down from its under-construction Aire Newstead development.

Recently submitted to Brisbane City Council, the proposal is for an 18-storey building designed by bureau^proberts, which has drawn heavily on Brisbane's subtropical design principles while referencing the suburb's industrial heritage.

A total of 64 apartments are planned for the amalgamated 1,518 sqm site at <a href="https://www.apartments.com.au/new-apartments/17-21-maud-street-newstead-qld-4006">17–21 Maud Street</a>, a short walk from the Brisbane River and Newstead Riverwalk.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="a400c7fd-bd15-48f8-a63b-10ede92efe00" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20bldg.png?VersionId=.0vPmjpbC7CNP7kqGWa6L7rGIwsNExaw" />

"The building is defined by a series of vaulted motifs that reinterpret the arches, colonnades and layered facades evident throughout Newstead's historic built fabric," the Urban Design Report states.

"Combined with recessed glazing and generous balconies, these elements create a layered building envelope that provides shade, weather protection and opportunities for natural ventilation whilst establishing a distinctive architectural identity."

The proposal comprises 64 two, three and four-bedroom apartments across 18 residential levels, positioning it alongside a growing number of taller residential projects transforming Newstead's northern precinct. The tower incorporates extensive subtropical landscaping, with cascading planter boxes, deep planting at street level and a landscaped rooftop recreation area.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="1d8140f4-8b98-45cd-b1b8-1efe8c8e266b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20podium.png?VersionId=VAZtbCoD44YCJ57N99fQCAKeSJx7ldZs" />

Bureau Proberts has prioritised passive environmental design throughout the project, with generous balconies, recessed glazing and operable façades helping reduce solar heat gain while maximising natural ventilation. River views become available from the upper levels, while the building has been orientated to capture prevailing breezes from both the Brisbane River and the west.

The architects say landscape is intended to be integral to the building rather than an applied element.

"Vertical greenery, cascading planter boxes and elevated gardens are woven throughout the architecture, softening the built form and strengthening the connection between residents and the subtropical environment."

"Through the integration of landscape, high-quality materials and passive design principles, the development delivers a refined residential address that celebrates Newstead's heritage character while contributing positively to Brisbane's evolving subtropical identity."

Newstead has remained one of Brisbane's most active apartment markets in recent years, with a number of developers continuing to back the inner-city suburb.

HG Developments is currently delivering the 40-apartment Aire Newstead at 25 Maud Street. Fortis recently launched the 65-apartment <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> on Kyabra Street, while builder-developer BPG and Don O'Rorke's Consolidated Properties are both expected to launch their respective Newstead projects before the end of the year.

HG Developments doubles down in Newstead with second Maud Street apartment development

Walk past a new apartment development promoting its sustainability credentials and it's easy to picture rooftop gardens, mature trees, landscaped courtyards and residents surrounded by nature.

But in many cases, that's not actually what those sustainability ratings guarantee.

Australia's leading environmental rating tools have played a significant role in improving the energy efficiency and environmental performance of buildings. Yet despite their focus on reducing emissions, many don't require developers to include trees, biodiversity or meaningful green space.

In other words, a building can achieve one of the country's highest sustainability ratings while containing little more than concrete, glass and hard landscaping.

That disconnect has led to the emergence of a new movement across Australia's property industry: nature-based cities.

The concept goes beyond designing buildings that consume less energy. Instead, it encourages developers to treat nature as essential infrastructure, integrating biodiversity, tree canopy, living landscapes and green spaces into projects from the earliest stages of planning.

Research has consistently linked access to nature with better physical and mental health, cooler neighbourhoods, improved biodiversity, stronger climate resilience and more connected communities. As Australia's cities continue to become denser, advocates say those outcomes should be considered just as important as energy efficiency.

Nature Based Cities (NBC) was established in 2022 to help accelerate that shift.

Founded by Hamton Executive Chairman Paul Hameister OAM, the not-for-profit was created after research highlighted a significant gap in Australia's sustainability framework. While existing environmental rating tools rewarded energy performance and emissions reductions, they placed little emphasis on the inclusion of living landscapes.

"We've always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren't there," Hameister says.

"In Australia, you can have a five-green-star rated building that's concrete and glass with not a blade of grass.

"The focus is on reducing emissions, which is laudable, but there hasn't been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities."

Since its launch, NBC has developed independent design guidelines and accreditation frameworks that encourage developers to prioritise ecology, biodiversity, tree canopy, walkability and living landscapes alongside traditional sustainability measures. The organisation first focused on medium and high-density residential developments before recently expanding into precinct-scale communities and masterplanned neighbourhoods.

Jan Talacko, founder of sustainability consultancy Ark Resources and a member of the Nature Based Cities Advisory Council, says the initiative addresses an area that has largely been overlooked by the property industry.

"Throughout my 25 years of working collaboratively with all stakeholders in the property sector, I've always favoured a pragmatic approach to sustainable design which encourages initiatives that not only meet environmental expectations but also improve amenity," Talacko says.

"Whilst we are making steady progress in relation to energy and carbon emissions from buildings, there has been much less emphasis on encouraging biodiversity and tackling the urban heat island effect.

"The Nature Based Cities initiative responds to a gap in the suite of tools currently used by the property development sector, which don't provide sufficient incentive, or recognition, for the integration of landscaping and greenery."

For apartment buyers, the shift is also changing the questions worth asking.

Rather than assuming a sustainable building will naturally include abundant green space, buyers are increasingly being encouraged to look beyond environmental ratings and ask what nature is actually being delivered. How much tree canopy will the development create? Has biodiversity been considered? Are landscaped spaces designed for people as well as appearance?

As Australia's cities continue to grow upwards and outwards, the next generation of sustainability may not simply be measured by lower emissions, but by how successfully developments bring nature back into everyday urban life.

What does it really mean for a building to be 'green'?

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

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First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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Risk will be the buzzword in 2012, with investors seeking stable investments like bonds and commercial property, according to diversified fund manager Centuria.
Centuria believes the current volatile environment will continue into 2012 and says it could take up to two years before any kind of “normality” returns.
In this risk-averse environment, investors in search of low-risk, low-volatility investments will be drawn to commercial property as part of reweighting and re-diversifying their portfolios, the company says.
“Investors will move towards a ‘back to basics’ approach that sees a return to favour of the traditional one-third shares, one-third property and one-third cash allocations, at least as a starting point,” the company forecasts.
According to Centuria further reductions in interest rates in early in 2012 would further boost the appeal of commercial property.
And it believes that ongoing market volatility will offer further “attractively priced investment property opportunities” that can be packaged to offer investors steady income streams.
“In the past 10 or more years, many investors have been focused on returns, returns, returns. In 2012, the risk aversion that’s been growing will become even more prevalent, as investors realise that market volatility is here to stay. Risk will be the new “R” word,” says John McBain, chief executive of Centuria Capital.
“Instead of just sitting in cash as they have been, investors will realise that it’s time to make some considered decisions and return to a more defensive and balanced asset allocation.
“Investors should be looking to more conservative investment strategies such as equal allocations between shares, property and cash,” says McBain. 
For investors balancing their asset allocations more evenly, the property and bond markets will benefit, particularly as falling interest rates steer them away from cash and make direct property and bonds a more attractive long-term investment return proposition, he says.
During 2011, Centuria’s portfolio comprising office, industrial and homemaker centres grew beyond $1 billion worth of funds under management following the purchase in April of a newly constructed five-level commercial building at 8 Australia Avenue, Sydney Olympic Park for $30.15 million. 
The building, completed in 2010, is 100% leased with tenants including Fujitsu, The Sydney Olympic Park Authority and Watpac.
 
 
 
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lschlesinger-FZcF9M3vE6

Commercial property will appeal to risk-averse investors in 2012: Centuria

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Suggestions by Mortgage Choice CEO Michael Russell that overly conservative property valuers are hampering the recovery of the property market have been affirmed by residential property developers in Queensland, who say valuers are to blame for one in two sales contracts to falling over.
Property developers claim that in some cases valuations are coming in 15% to 30% below the contracted sales prices, with Des Ryan from Demac Homes telling the Australian Financial Review the sale of a three-bedroom duplex for $340,000 fell through after the valuation came through at $280,000.
Ryan says the accuracy of valuations needs to be questioned, labelling valuers “a cancer in the building industry”.
“I have had one valuer in here boast that he has had to value the same property seven times before it finally got sold.” 
Another developer, David Horder from Gorman Property, told a similar story, with a $175,000 land sale near Ipswich falling over after the bank-instructed valuer said it was only worth $130,000.
Horder believes valuers are lowering their valuations under pressure from the banks, which are facing tougher capital restrictions.
However, the banks have dismissed the suggestion, with Westpac senior product risk manager Matthew Miller telling the AFR valuers were under no pressure to report more conservative valuations.
Propell National Valuers chief executive Bart Mead says in addition to “highly publicised market trends, competitive property sales and demand levels”, factors such as property presentation, renovations and location have had a major impact on values in 2011.
Mead says owners must consider not only the capacity for a property to expand, extend or renovate, but also its capacity to be demolished and replaced.
“Renovations and extensions need to be sympathetic to the rest of the property, and building permission and certificates should be sighted, as amateur work can often detract,” he says.
According to Mead, particular location issues also affect valuations, even if the property itself is comparable to others in the suburb.
“T-junctions, bus stops, cul-de-sacs, views, hills and access to the city can all detract or add value to a property,” he says.
 
 
 
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Queensland developers say overly conservative valuers to blame for sales failures

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Property market analyst Michael Matusik has dismissed government forecasts that Australia is heading for a massive undersupply of housing over the next two decades, arguing that politics and “vested interests” are at play.
 
The National Housing Supply Council’s State of Supply Report for 2011 forecasts that at the current rate of new housing construction, Australia will have a shortfall of 640,000 dwellings by 2030.
<img src="/images/stories/housingsupply.gif">
Source: State of Supply Report
According to the report, the gap between housing demand and supply increased by 28,200, (nearly 18%) to 186,800 housing units in the 12 months to the end of June 2010, with NSW and Queensland having the largest shortfalls of 73,700 and 61,900 homes respectively. 
The Real Estate Institute of Australia, Housing Industry Association , Urban Taskforce Australia, Master Builders Australia and lobbying group Australians for Affordable Housing have all responded to the report by demanding government action to address the shortfall in housing. 
But Matusik says the people who compiled the report have a “vested interest in finding an undersupply – they keep their posts”. 
According to Matusik, there will be no undersupply unless migration picks up enormously. 
“Once you look into the facts and ignore the spin, you find that Australia’s new housing market isn’t that undersupplied at all. 
“Housing industry and banking economists keep reminding Australians of a massive housing shortfall of around 300,000 new homes that will double in size over the next decade,” he says.
“Australia’s population growth has slowed by close to 150,000 in just two years, with a 100,000 drop in the actual growth rate over the last 12 months.  As a result, the underlying demand for new housing has dropped from 180,000 starts per annum to around 125,000.  While dwelling starts are declining, we are now building too much stock.
“Unless new housing starts decline in earnest or population growth accelerates, Victoria, South Australia, Tasmania and the Northern Territory face an oversupply.  Perth and Canberra are better positioned, with Queensland currently at equilibrium and New South Wales undersupplied.”
“Yes, we don’t have enough affordable new homes, but we have an ample supply of new dwellings pitched at speculators,” he says.
Matusik occupies a lonely position. 
AAH campaign manager Sarah Toohey says the report “shows an unacceptable shortfall in the supply of housing in Australia”. 
“Australia has a structural problem in the housing market and only a comprehensive plan that includes extra affordable housing supply, taxation reform, increases to and reform of Commonwealth Rent Assistance and better and more targeted support to first-home buyers will deliver the affordable housing solutions that low- and middle-income Australians need,” she says. 
HIA chief executive Graham Wolfe says the modelling in the report and forecast of a 640,000-dwelling shortfall by 2030 is “not inconsistent with the trends that HIA’s own modelling has identified”. 
“As a nation, we must embark on a significant housing policy reform agenda if we are to reinvigorate the residential building sector and keep the great Australian dream of home ownership a reality,” he says. 
Wilhelm Harnisch, CEO of Master Builders, says the report highlights the growing problem of undersupply of housing and the urgent need for all governments to address the problem through a co-ordinated policy response. 
“The continuing global economic uncertainty has contributed to the current sluggish housing market conditions but is masking the true extent of the housing undersupply challenge,” he says. 
The State of Supply Report says that despite weaker market conditions, the housing shortage continues to widen. 
It says that for the year to June 30, 2010 an additional 131,000 houses were built, 9,700 fewer than were projected in the previous report. 
At the same time underlying demand for housing grew by an estimated 159,200 dwellings over this period resulting in a shortfall 28,200 for the year and pushing up the revised 2009  shortfall of 158,500 to 186,800 in 2010. 
According to the report, a large reason for the gap widening is “a growing divergence between underlying demand, which is demographically driven, and effective demand, which is what actually happens in the market and is driven by economic as well as demographic factors”. 
“The building industry has also had to face up to a weaker market, and the volume of property being built has fallen significantly. Approvals for building dwellings other than detached houses (largely multi-unit apartment buildings) saw a longer downturn than those for building houses following the global financial crisis,” the report says. 
“The council believes that this is partly due to more limited access to development finance for this form of development subsequent to the GFC and in the light of market conditions.” 
The report was launched by new Minister for Housing and Homelessness Robert McClelland, who says housing undersupply challenges will be examined as part of the Housing Supply and Affordability Reform agenda. 
“The government is working with the states to finalise this examination of supply constraints in the housing market, with a report to be delivered to the Council of Australian Governments soon,” he says.
 
 
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Michael Matusik dismisses housing undersupply findings as 'spin'

<html><body>
 
<table width="426" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="69">
Postcode
</td>
<td valign="bottom" nowrap width="151">
Suburb
</td>
<td valign="bottom" nowrap width="206">
Average discount on vendor’s asking price for house sales
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4068
</td>
<td valign="bottom" nowrap width="151">
CHELMER
</td>
<td valign="bottom" nowrap width="206">
23.5%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4106
</td>
<td valign="bottom" nowrap width="151">
ROCKLEA
</td>
<td valign="bottom" nowrap width="206">
23%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4184
</td>
<td valign="bottom" nowrap width="151">
RUSSELL ISLAND
</td>
<td valign="bottom" nowrap width="206">
22.6%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4184
</td>
<td valign="bottom" nowrap width="151">
COOCHIEMUDLO ISLAND
</td>
<td valign="bottom" nowrap width="206">
22.5%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4183
</td>
<td valign="bottom" nowrap width="151">
POINT LOOKOUT
</td>
<td valign="bottom" nowrap width="206">
22.2%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4006
</td>
<td valign="bottom" nowrap width="151">
NEWSTEAD
</td>
<td valign="bottom" nowrap width="206">
19.7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4184
</td>
<td valign="bottom" nowrap width="151">
MACLEAY ISLAND
</td>
<td valign="bottom" nowrap width="206">
19.7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4105
</td>
<td valign="bottom" nowrap width="151">
TENNYSON
</td>
<td valign="bottom" nowrap width="206">
19.5%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4169
</td>
<td valign="bottom" nowrap width="151">
KANGAROO POINT
</td>
<td valign="bottom" nowrap width="206">
18.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4000
</td>
<td valign="bottom" nowrap width="151">
SPRING HILL
</td>
<td valign="bottom" nowrap width="206">
18.7%
</td>
</tr>
</tbody></table>
 
Source: RP Data
 
 
 
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cknowlton-QnEa6ntUYP

Top 10 Brisbane suburbs with the highest average discount for house prices: RP Data

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Westpac chief economist Bill Evans has joined the <a href="https://www.propertyobserver.com.au/economy/anz-and-commonwealth-bank-tip-february-rate-cut/2011122052904" target="_blank">Commonwealth Bank and ANZ</a> by forecasting the Reserve Bank will cut the cash rate for the third consecutive time when it next meets on February 7. 
A third rate cut would take the cash rate back to the 4% last seen in March 2010. 
Evans says the minutes of the RBA’s December monetary policy meeting indicate that the key theme “was the concern that sovereign credit and banking problems would weigh heavily on economic activity in Europe, which continued to pose downside risks to the global economy and, consequently, Australia”. 
“There was also further recognition of the mixed outlook for Australia with housing; consumers; and employment all looking subdued. 
“On the other hand business investment, particularly mining, looked robust. With prospects for Europe steadily deteriorating and the interest rate sensitive parts of the economy remaining weak we believe there is ample scope for a further rate cut in February,” Evans says.
In addition to the February rate cut expectation, Westpac is forecasting one more interest rate cut in 2012, in line with its prediction of a 100-basis-point rate cut cycle, which kicked off in November.
Evans made his prediction following publication of the annualised growth rate of the Westpac–Melbourne Institute Leading Index, which indicates the likely pace of economic activity three to nine months into the future. It was 2.6% in October 2011, below its long-term trend of 3%.
“It appears that the boost to above trend growth we saw in July and August has quickly faded and the ‘around trend’ story which has been generally the case since the beginning of 2011 is now appropriate,” says Evans. 
Westpac is forecasting growth in 2012 of 3% – slightly below trend growth for the economy.
 
 
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Westpac tips February rate cut

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Listed property trust Growthpoint has spent $290 million on three Brisbane office properties and an office development site on Sydney’s north shore as it builds up the office component of its $1.54 billion portfolio. 
The new Sydney development is located at 219?247 Pacific Highway, Artarmon, within the Gore Hill Technology Park, and was purchased for $82.7 million, providing an initial passing yield of 8.1% on completion. 
Fox Sports will lease 48% of the 14,136 square metres of the net lettable area in a 10-year deal with two renewal options of five years each. 
The building is due to be completed in late 2012 or early 2013 and is targeting a five-star NABERS rating and five green star ratings. It will comprise six upper levels, a lower ground floor and two basement car park levels. 
The Artarmon sale was negotiated by Richard Horne, national director of investment sales at Knight Frank. 
The three other buildings that make up the transaction include two modern office buildings in South Brisbane bought for $96.8 million at an initial passing yield of 8.6% with 11,561 square metres of net lettable area and an A-grade 24-level office building at 333 Ann Street in the Brisbane CBD bought for $109.9 million, providing an initial passing yield of 9.1%. 
South Brisbane tenants include Fusion, Roche and the Queensland government while Anne Street tenants include Runge Limited, Robert Bird Group and Xtract Mining Consultants. 
The Brisbane deals were negotiated by Bruce Baker and Flint Davidson of CBRE. 
The four properties will bring Growthpoint’s portfolio to 40 properties and increase its book value to about $1.54 billion. 
Commenting on the acquisitions, Growthpoint managing director Timothy Collyer says they are consistent with its strategy to “acquire quality modern properties that are well tenanted to enable future growth of the group’s distributable income”. 
“The acquisitions continue our diversification into the Australian office sector,” he says. 
Following these acquisitions, the property portfolio will comprise 47% office property and 53% industrial property. 
Growthpoint’s properties are located in each of the mainland states close to CBD infrastructure such as airports and ports. 
The purchases will be financed via a $166.4 million equity raising, with the balance funded through extended debt facilities.
 
 
 
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Growthpoint snaps up new Fox Sports Sydney building in $290 million buying spree 

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The property funds management industry has undergone significant change over the past three years as a result of corporate activity and restructuring. While the highly leveraged position of several funds caused distress and ultimately failure such as those run by Allco and Babcock &amp; Brown, some funds have been subsumed by competitors or new entrants. Other fund managers have elected to strategically exit the industry such as Westpac and <place>Macquarie</place>.
Corporate activity in the unlisted retail property fund industry has been substantial. Table 1 shows the ranking of the five syndicate and unlisted property trust managers with highest funds under management in each of 2008 and 2011. 
Table 1 - Ranking of Property Syndicate and Unlisted Retail Fund managers
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="55" valign="top">
Rank
</td>
<td width="84" valign="top">
2008
</td>
<td width="144" valign="top">
Assets ($m)
</td>
<td width="132" valign="top">
2011
</td>
<td width="144" valign="top">
Assets ($m)
</td>
</tr>
<tr>
<td width="55" valign="top">
1
</td>
<td width="84" valign="top">
Centro
</td>
<td width="144" valign="top">
5,590
</td>
<td width="132" valign="top">
Centro
</td>
<td width="144" valign="top">
3,790
</td>
</tr>
<tr>
<td width="55" valign="top">
2
</td>
<td width="84" valign="top">
Multiplex
</td>
<td width="144" valign="top">
2,861
</td>
<td width="132" valign="top">
Charter Hall
</td>
<td width="144" valign="top">
1,448
</td>
</tr>
<tr>
<td width="55" valign="top">
3
</td>
<td width="84" valign="top">
Becton
</td>
<td width="144" valign="top">
2,127
</td>
<td width="132" valign="top">
Orchard
</td>
<td width="144" valign="top">
1,424
</td>
</tr>
<tr>
<td width="55" valign="top">
4
</td>
<td width="84" valign="top">
Mirvac
</td>
<td width="144" valign="top">
1,372
</td>
<td width="132" valign="top">
Australian Unity
</td>
<td width="144" valign="top">
1,292
</td>
</tr>
<tr>
<td width="55" valign="top">
5
</td>
<td width="84" valign="top">
<place>Macquarie</place>
</td>
<td width="144" valign="top">
1,367
</td>
<td width="132" valign="top">
APGF
</td>
<td width="144" valign="top">
1,221
</td>
</tr>
<tr>
<td width="55" valign="top">
 
</td>
<td width="84" valign="top">
 
</td>
<td width="144" valign="top">
45%
</td>
<td width="132" valign="top">
 
</td>
<td width="144" valign="top">
51%
</td>
</tr>
</tbody></table>
Source: PIR 
Since 2008, Multiplex has sold its retail funds management business to the Canadian Brookfield Asset Management; Centuria and 360 Capital Management split the Becton funds between them; Mirvac first acquired both PFA and Domaine, then sold its retail funds management business to APGF; and Macquarie sold its retail funds management business to Charter Hall. Centro has undertaken a restructure of its Australian assets and funds into a new listed entity, Orchard is seeking a corporate solution and Australian Unity has acquired retail property fund management rights from both Westpac and Investa. 
The performance of the industry is also reflected in the change in the respective size of the industry. In 2008, funds under management totalled $18.5 billion. By 2011, asset sales, fund closures and asset write-downs left the industry with $13.3 billion, a reduction in size of 28%. The assets controlled by Centro in the unlisted property funds industry have been reclassified into the A-REIT industry, further reducing the size of the unlisted industry. 
Despite Westfield splitting out its new Retail Trust and the strategic exit from property fund management by ING, the A-REIT industry has experienced comparatively little change on its leader-board, with only one new name in the top five since 2008 as a consequence of the decision by Macquarie to exit property funds management. 
Table 2 - Ranking of A-REITs
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="52" valign="top">
Rank
</td>
<td width="104" valign="top">
2008
</td>
<td width="144" valign="top">
Assets under management  ($m)
</td>
<td width="108" valign="top">
2011
</td>
<td width="144" valign="top">
Assets under management  ($m)
</td>
</tr>
<tr>
<td width="52" valign="top">
1
</td>
<td width="104" valign="top">
<place><city>Westfield</city></place>
</td>
<td width="144" valign="top">
51,241
</td>
<td width="108" valign="top">
<place><city>Westfield</city></place>
</td>
<td width="144" valign="top">
50,133
</td>
</tr>
<tr>
<td width="52" valign="top">
2
</td>
<td width="104" valign="top">
<place>Macquarie</place>
</td>
<td width="144" valign="top">
16,261
</td>
<td width="108" valign="top">
Stockland
</td>
<td width="144" valign="top">
14,544
</td>
</tr>
<tr>
<td width="52" valign="top">
3
</td>
<td width="104" valign="top">
GPT Group
</td>
<td width="144" valign="top">
13,967
</td>
<td width="108" valign="top">
Colonial
</td>
<td width="144" valign="top">
12,179
</td>
</tr>
<tr>
<td width="52" valign="top">
4
</td>
<td width="104" valign="top">
Centro Group
</td>
<td width="144" valign="top">
13,927
</td>
<td width="108" valign="top">
Centro Group
</td>
<td width="144" valign="top">
11,058
</td>
</tr>
<tr>
<td width="52" valign="top">
5
</td>
<td width="104" valign="top">
Stockland
</td>
<td width="144" valign="top">
13,700
</td>
<td width="108" valign="top">
GPT Group
</td>
<td width="144" valign="top">
9,752
</td>
</tr>
<tr>
<td width="52" valign="top">
 
</td>
<td width="104" valign="top">
 
</td>
<td width="144" valign="top">
53%
</td>
<td width="108" valign="top">
 
</td>
<td width="144" valign="top">
67%
</td>
</tr>
</tbody></table>
Source: PIR 
Over the three-year period, total assets in the A-REIT sector reduced by 20% to $129 billion, but the proportion of the assets held by the five largest managers increased significantly. This can be largely attributed to the dominance of Westfield, which increased its share of the A-REIT’s assets from 25% in 2008 to 34% in 2011. 
Corporate activity, strategic fund manager exits and excessive leverage, some culminating in corporate failure, have all translated into significant changes in the property funds management industry, particularly in the unlisted property sector. Following this shakedown, a more stable 2012 is in prospect for the property funds management industry. The enduring value of property investment is derived from the underlying assets which provide the return performance notwithstanding the overlay of gearing and fund strategies.
Mark Wist is senior asset consultant at <a target="_blank" title="Atchison Consultants" href="https://www.atchison.com.au/">Atchison Consultants</a>.
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Listed property trust industry should be more stable in 2012

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The legal dispute between Queensland-based advisory group The Investors Club and WA couple Marilee Coombs and Hugh Wilson will be heard in a Perth court next year after two attempts at a mediated resolution failed.
A closed hearing took place in the Federal Court of Western Australia on November 4 following a first court mediation taking place on September 12.
A spokesperson for Slater and Gordon, the law firm representing the Denmark, WA couple, told Property Observer that papers have been filed and the case is heading for trial.
“We are waiting for a date but are hopeful the case will be heard early next year,” the spokesperson says, adding that the case would be closely followed by other people who purchased property through the club and are “concerned about the value of their homes”.
In August this year Coombs and Wilson launched a claim against the property investment company and two staff members alleging they had been advised to purchase a three-bedroom bushland house in Highland Park on the Gold Coast that they later discovered was grossly overpriced. 
Coombs and Wilson allege the company engaged in misleading and deceptive conduct when it advised them to purchase the property. 
The property reputedly cost $630,000 when the couple bought it in 2007, though official records show a public sale price of $905,000. 
The Investors Club also negotiated a $60,000 discount for the couple on the sale price.
However, after the couple purchased the property they say an independent valuation revealed the unit was worth as little as $450,000 at the time of the deal.
Coombs says she relied on the advice and assurances of The Investors Club and that this was a sound investment.
In October the couple <a href="https://www.propertyobserver.com.au/residential/investors-club-legal-mediation-resumes-as-gold-coast-house-sells-at-huge-loss/2011110452215" target="_blank">crystallised their loss when the property was sold for $391,000.</a> 
The couple are represented by Slater and Gordon lawyer Carita Kazakoff, who says Wilson and Coombs were told by The Investors Club that the Kirribilli Heights house in Highland Park was worth up to $1 million, and they would make an instant profit of $300,000 on settlement. 
“My clients, who are in their late 50s and 60s, wanted a secure investment for their future. They trusted the professional advice given to them by The Investors Club. 
“However, after purchasing the Gold Coast property they are now hundreds of thousands of dollars out of pocket, and at risk of losing their family home,” Kazakoff said in August. 
“The Investors Club and its two staff members ought to have known that the purchase price of the property was well above market value, and that promises of an instant profit, and appreciation in value of $60,000 in the first year were unreasonable,” she says. 
A spokesperson for The Investors Club confirmed the dispute was heading for trial. The club denies the allegations. 
In September the club issued the following statement to Property Observer: 
“It is concerned to hear that an investor is taking action against a Branch Manager and Support Member in Western Australia over information provided for a property purchase in Kirribilli Heights Complex, Queensland, before the Global Financial Crisis in 2007.
“Six staff members at The Investors Club, including the branch manager who is presently being sued, also purchased property in the complex. The valuations for The Investors Club staff were completed by two different respected national valuers and came back at a similar valuation to the contract price. The investor who is taking action used a different lender to The Investors Club staff, who would have also insisted on a valuation and appointed an independent valuation company to complete, as is standard practice.”
“The investor, who is now suing The Investors Club, struggled with the mortgage repayments and the line of credit they had taken on the loan when the global financial crisis hit. They had the property retrospectively valued (in the last 12 months), returning a much lower valuation.
“The retrospective valuation returned a much lower price as number of owners in the complex had units sold as mortgagee in possession when the financial crisis hit, bringing down prices for all the properties in the complex.  The retrospective valuation places this valuation at a significant discount to the construction cost for the property as compared to the construction chartered quantity surveyor as used by the construction lender.
“The subject property is not a normal townhouse development, it is an internationally awarded development with 270-degree views of the Gold Coast coastline and is the last remaining approved development along the hinterland escapement and as such is a very unique property.”
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After mediation fails, Investors Club dispute headed for court

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CBRE has labeled 2011 the “year of the foreigner” because offshore buyers accounted for 37% of all commercial property transactions, the highest proportion of offshore investment in almost 20 years. 
Taking into account sales over $20 million, the total value of 2011 transactions reached $9.8 billion as of December 16, 13% higher than the previous year, with foreign investors accounting for $3.7 billion of these transactions. 
Asian buyers accounted for more than half (51%) of all offshore investment and nearly one in five (19%) of total transactions for the year. 
Outside of Asia, foreign capital has been flowing in from a wide variety of sources, including the US and South Africa. There have also been some first-time investments from Canada, Austria and China. 
German investors, once the driving force among foreign investors, accounted for just 10% of offshore activity, according to CBRE’s data, as concerns closer to home limited global acquisitions. 
The share of foreign investment in Australia has increased every quarter in 2011 after getting off to a slow start in the first quarter with just 4% of transactions being offshore buys. 
However, this share rose to 34% as the market bounced back in the second quarter, increased again to 41% in third quarter, before hitting 44% of total sales for the fourth quarter (as at December 16). 
“It’s been a strong and definite trend of foreign interest and activity in Australia’s property market in 2011,” says Kevin Stanley, CBRE’s executive director for global research and consulting. 
“There are many motivators, all working together at present. Australian yields remain high by global standards, kept that way ultimately by the high local cost of debt and the limit this places on bidding from domestic investors. Add to that the search for an economy with a half-decent outlook and an ease in doing property business and Australia is an obvious choice for global investors.” 
Rick Butler, CBRE senior managing director for international investments, says the “push into Australia is being driven predominantly by fund managers and sovereign wealth funds working out of Singapore, along with some big-hitting private investors from the same city”. 
“The Australian market continues to attract foreigners due to its growth story, compared to Europe and the US, together with its transparency.” 
The fast growth in savings in Asia has fuelled activity as investors adopt global investment strategies to diversify risk. 
While foreign investors have been the dominant buyer group in 2011, Stanley says there was increased competition from domestic groups toward the end of the year as superannuation funds, wholesale funds and unlisted property trusts started to increase acquisitions as more substantial assets reached the market, particularly from the troubled A-REIT sector. 
These domestic groups together accounted for 21% of acquisitions in 2011, making them the second largest group behind foreign investors. 
Across all property sectors, NSW recorded the largest share of sales in 2011 (32%), with Victoria accounting for 25%.  Queensland and Western Australian trading was in line with the size of their share of the property markets nationally, at 20% and 10% of sales activity respectively. 
Significant offshore deals in 2011 include:
<ul>
<li>Singaporean-based private investor Memo Corp buying 259 George Street $395 million 
</li>
<li>Hong Kong-based RREEF buying 20 Bridge Street, Sydney for $185 million </li>
</ul>
<ul>
<li>Credit Suisse’s all equity purchase of 55 Elizabeth Street, Brisbane for $165.5 million </li>
</ul>
<ul>
<li>US pend fund Pramerica/NPS buying 595 Collins Street, Melbourne for $130 million</li>
</ul>
<ul>
<li>A German pension fund (through RREEF) buying 140 Sussex Street, Sydney for $84 million</li>
</ul>
Major purchases made by domestic groups this year include:
<ul>
<li>The $310 million 50% purchase of the QV1 office building in Perth by superannuation fund Australian Reward Alliance. 
</li>
<li>The purchase of the office property at 452 Flinders Street, Melbourne for $201.5 million by the DEXUS Property Wholesale Fund.</li>
</ul>
 
 
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Offshore investment in Australian commercial property at 20-year high

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The Melbourne rental vacancy rate climbed from 3% to 3.4% in November with the number of properties available to rent climbing from 10,956 to 12,367, according to figures compiled by SQM Research. 
The city now accounts for a quarter of the 48,244 properties available to rent nationally, with Melbourne vacancies increasing every month while the national vacancy rate remains steady. 
According to SQM, Melbourne’s high levels of sale stock confirm the city is “currently undergoing an oversupply issue”. 
“Coming off the building boom that occurred in 2009 and 2010, the city has many ‘newly completely’ and ‘currently being constructed’ dwellings, but unfortunately not enough demand to meet the high levels of stock available,” says SQM. 
A year ago, Melbourne had a vacancy rate of 2.8%, with 10,270 properties available to rent. 
Nationally the rental market remains tight though the vacancy rate eased slightly from 1.7% to 1.8%, with more than 2,300 more properties available to rent in November than there were in October. 
Vacancy rates eased slightly in all the other major capital cities with the Sydney vacancy rate still remaining tight at 1.5%. 
Perth remains the tightest major capital city market, with a vacancy rate of just 0.8% and just over 1,200 properties available to rent, a slight improvement from the 0.7% vacancy rate recorded in October. 
Canberra was the only capital city where the vacancy rate tightened over November. Fewer than 300 properties remain available to rent in Australia’s capital city.
<img src="/images/stories/sqmdec21.gif">
SQM Research managing director Louis Christopher says 2011 has been a “landlord’s market, with rents nationwide recording rises of 4.6% plus, according to the Australian Bureau of Statistics”. 
“Sydney has recorded the fastest rents while Melbourne has been at the other end of the spectrum with zero rental growth, and in some areas rental declines. 
“I expect 2012 to be somewhat the same with possibly another five plus per cent increase. But this again assumes that our economy stays out of recession and we don’t all get sucked up into the back hole that is Europe. 
“We expect softness at the prestige end of the market because during a slowdown, discretionary spending is cut.” 
Hobart recorded the largest yearly growth in rental vacancies of all capital cities, with vacancies increasing by 0.9% over the past 12 months to a total of 448 vacancies (1.9%). 
Darwin has recorded the most substantial yearly falls, decreasing by 0.9% since the corresponding period of the previous year (November 2010) and coming to a total of 298 vacancies (1.3%). 
 
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